LAW – Inter Class Test Prepared By Swami PH: 98142-12453

The Companies Act, 2013

Time = 1hr 30m .Marks = 50

Q.No1.

(a) Data Limited (listed on Stock Exchange) was incorporated on 1st October, 2018 with a paid - up share
capital of ` 200 crores. Within this small time of 4 months it has earned huge profits and has topped the
charts for its high employee friendly environment. The company wants to issue sweat equity to its
employees. A friend of the CEO of the company has told him that they cannot issue sweat equity shares
as 2 years have not elapsed since the time company has commenced its business. The CEO of the
company has approached you to advise them about the essential conditions to fulfilled before the issue
of sweat equity shares especially since their company is just a few months old. 4m

(b) Examine the following situations in the light of the Companies Act, 2013
(i) Mr. Ayush, a Chartered accountant has been appointed as an auditor of X Ltd. in the Annual General Meeting
of the company held in September, 2018, in which he accepted the assignment. Subsequently, in January, 2019 he
joined B, as a partner for the consultancy firm of Mr. B. Mr. B is working also working as a Finance Executive of
X Ltd.
(ii) “Mr. Abhi”, a practicing Chartered Accountant, is holding securities of “Abhiman Ltd.” having face
value of ` 1000/-. Whether Mr. Abhi is qualified for appointment as an Auditor of Abhiman Ltd.”? 4m

(c )Altar Limited has on its Board, four Directors viz. W, X, Y and Z. In addition, the company has Mr. D as the
Managing Director. The company also has a full time Company Secretary, Mr. Wise, on its rolls. The financial
statements of the company for the year ended 31st March, 2017 were authenticated by two of the directors, Mr. X
and Y under their signatures.
Referring to the provisions of the Companies Act, 2013:
(i) Examine the validity of the authentication of the Balance Sheet and Statement of Profit & Loss and the Board’s
Report.
(ii) What would be your answer in case the company is a One Person Company (OPC) and has only one
Director, who has authenticated the Balance Sheet and Statement of Profit & Loss and the Board’s
Report? 5m

(d) Mr Akshat entered into an agreement for purchasing a commercial property in Delhi belonging to NRT
Ltd. At the time of registration, Mr Akshat comes to know that the title deed of the company is not free
and the company expresses its inability to get the title deed transferred in the name of Mr Akshat saying
that he ought to have had the knowledge of charge created on the property of the company. Examine
with the help of ‘Notice of a charge’, whether the contention of NRT LTD. is correct? 3m

Q.No2.

(a)Referring to the provisions of the Companies Act, 2013, examine the validity of the following:
ABC Limited having a net worth of 120 crore rupees wants to accept deposit from its members. They have
approached you to advise them regarding that if they fall within the category of eligible company, what
special care has to be taken while accepting such deposit from members. (4 Marks)

(b) What is meant by “Abridged Prospectus”? Under what circumstances an abridged prospectus need not
accompany the detailed information regarding prospectus along with the application form? What are the
penalties in case of default in complying with the provisions related to issue of abridged prospectus? (4
Marks)

(c) Fine Publishers, registered in Tokyo, began operating in India during the financial year 2009. The
company has duly submitted all necessary documents to the registrar within the specified due date.
On 1st March, 2023, Fine Publishers has shifted its principal office in Tokyo. Is Fine Publishers
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LAW – Inter Class Test Prepared By Swami PH: 98142-12453

required to undertake any steps due to change in address of principal office. Give your answer in
reference to the provisions of the Companies Act, 2013. 4 marks

(d) A general meeting of a public company was adjourned by the chairman for want of quorum. Fresh notice
was not served for the adjourned meeting. Do you feel that notice is required for the adjourned meeting?
Referring to the provisions of the Companies Act, state the minimum number of members required to be
present in the adjourned meeting.
4 marks

Q.No3 MCQ

2 marks each 1 mark each

1. Rajesh has formed a ‘One Person Company (OPC)’ 6. Annual Genera! Meeting of a Public Company was
with his wife Roopali as nominee. For the last two scheduled to be held on 15.12.2017. Mr. A, a
years his wife Roopali is suffering from terminal illness shareholder, issued two
and due to this hard fact he wants to change her as
Proxies in respect of the shares held by him in favour of
nominee. He has a trusted and experienced friend
Mr. ‘X’ and Mr. Y. The proxy in favour of ‘Y’ was
Ramnivas who could be made nominee or his (Rajesh)
lodged on 12.12.2017 and the one in favour of Mr. X
son Rakshak who is of seventeen years of age. Whom
was lodged on 15.12.2017. The company rejected the
should he nominate as nominee in place of his wife?
proxy in favour of Mr. X as the proxy in favour of Mr. Y
(a) Since blood relation can only be appointed as
was of dated 12.12.2017 and thus in favour of Mr. X
nominee in case of OPC, Rajesh needs to appoint his
was of dated 15.12.2017. which Is valid proxy
son Rakshak.
a) Mr X
(b) Rajesh can appoint his friend Ramnivas as nominee
b) Mr Y
in his OPC
c) Both
(c) Roopali is not agreeable to the proposal of Rajesh
d) None
and hence, Rajesh cannot change her as the nominee
(d) Either Rakshak or Mr. Ramnivas can be
7. contracts made by or on behalf of a company,
appointed as nominee
may be signed by any
2. Vinay and Sanjay made a name reservation a) key managerial personnel or
application accompanied by requisite fee to the b) an officer
Registrar for forming a new private company. The c) *or employee of the company
Registrar accorded its approval for reservation of most d) Any of above if authorized by BoD
preferred name Vinanjay Softwares Private Ltd. on 7th
July, 2024. By which date necessary documents for 8. paid-up share capital limit for Small co. can be
incorporation of the company must be submitted to the enhanced upto
Registrar so that the reserved name does not get lapsed.
(a) Latest by 20th July, 2024 a) 50 lakh rupees
(b) Latest by 27th July, 2024 b) 10 crore rupees
(c) Latest by 4th August, 2024 c) 2 crore rupees
(d) Latest by 4th September, 2024 d) 100 crore rupees

3. In Roopali Marketing Company Private Limited

(Authorised capital 50,000 shares of Rs. 10 each and
paid-up share capital of Rs. 4,50,000), 1000 shares are
jointly held by Abeer and Abheek; another 800 shares
are jointly held by Seema and Srividya; and another
1200 are jointly held by Ramesh, Raksha and Rajneesh.
Further, 42,000 shares are held by 193 individual
persons in their individual capacity. Is it possible for
the company to induct more persons?
(a) The company is unable to induct more persons since
it already has two hundred individual members.
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LAW – Inter Class Test Prepared By Swami PH: 98142-12453

(b) The company can induct four more persons as

members.
(c) The company can induct another 20 persons (i.e.
10% of two hundred individual members) after seeking
permission from the concerned ROC.
(d) If the company does not want to seek permission
of the concerned ROC, it can induct only 10
more persons (i.e. 5% of two hundred individual
members). (2 Marks)

4. Amex limited is a public company having a net-

worth of Rs. 950 crores, turnover of 200 crores (the
company is just 5 years since the date of its
incorporation) during the immediately preceding
financial year, has to constitute a Corporate Social
Responsibility (CSR) Committee. It has 9 Directors (A,
B, C, D, E, F, G, H and I). Further, Mr. F, G, H and I
are independent directors. Out of the following
statements which statement is correct:
(a) CSR committee may constitute of A, B and C
(b) CSR committee may constitute of A, B and D
(c) CSR committee may constitute of A, F and G
(d) There is no need to constitute a CSR committee
as the turnover is just 200 crores during the
immediately preceding financial year (2 Marks)

5.The Articles of Associations of X Ltd. require the

personal presence of six members to
constitute quorum of General Meeting. The
following persons were present at the time of
commencement of an Extraordinary General
Meeting to consider the appointment of
Managing Director:
(i) Mr. G. the representative of Governor of
Gujarat
(ii) Mr. A and Mr. B, shareholders of
Preference Shares.
(iii) Mr. L. representing M Ltd., N Ltd. and X
Ltd.
(iv) Mr. P, Mr. Q, Mr. R and Mr. S who were
proxies of Shareholders.
Who shall be counted in quorum .

a) (i ) & (ii)
b) (i) & (iii)
c) (i), (ii) & (iii)
d) (i) & (iv) 2marks

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 LAW – Inter Class Test Prepared By Swami PH: 98142-12453
Case Scenario -MCQ 1 MARK EACH
Golden Limited is a listed company which is incorporated in 2013 having its registered office at Delhi and corporate office in
Noida. It is registered with an authorised share capital of ₹ 20 crore divided into 2 crore equity shares of
₹ 10/- each. The paid-up share capital of the company is ₹ 10 crore divided into 1 crore equity shares of ₹ 10/- each. The
company is in construction activities like construction of buildings, roads, etc.

On 8th January, 2022, the company incorporated a wholly owned subsidiary, D Limited which is involved in supplying of
construction materials like steel, iron, cement, bricks, etc. D Limited elects to choose to prepare its first financial statements
for the period from 8th January, 2022 to 31st March, 2022.

On 2nd January, 2022, Golden Limited incorporated a new wholly owned subsidiary, E Limited for providing project
management consultancy service to its customers or to parent company. On 5th January, 2022, Golden Limited through its
subsidiary, E Limited acquired 100% partnership interest in XYZ & Co., partnership firm. E Limited elects to choose to
prepare its first financial statements for the period from 2nd January, 2022 to 31st March, 2023 and conducted its Annual
General Meeting on 16th August, 2023.

On 1st July, 2022, the subsidiary company, D Limited incorporated a new wholly owned subsidiary, F Limited.
Golden Limited prepared its standalone financial statements for the year 2021-22 and presented before the Board of Directors
of the company on 25th August, 2022 for their approval and the same were adopted by the shareholders in the Annual
General Meeting held on 2nd September, 2022.

Golden Limited prepared its standalone and consolidated financial statements for the year 2022-23 and presented before the
Board of Directors of the company on 20th August, 2023 for their approval and the same were adopted by the shareholders in
the Annual General Meeting held on 26th September, 2023.
On the basis of above facts and by applying applicable provisions of the Companies Act, 2013 and the applicable Rules
therein, choose the correct answer (one out of four) of the following MCQs given herein under: -

1. What is the last date for conducting AGM for E Limited?

(a) 30th September, 2022
(b) 31st December, 2022
(c) 30th September, 2023
(d) 31st December, 2023

2. What is the due date for conducting AGM for Golden Limited for the year ended March 31, 2023?
(a) 30th September, 2023
(b) 31st October, 2023
(c) 30th November, 2023
(d) 31st December, 2023

3. The Companies Act, 2013 provides that in addition to standalone financial statement, the company shall also prepare
consolidated financial statements which shall also be presented at AGM. Accordingly, the consolidated financial statements
of Golden Limited for the financial year ended 31st March, 2022 includes, financial statements:
(a) Golden Limited and D Limited
(b) Golden Limited, D Limited and E Limited
(c) Golden Limited, D Limited, E Limited and XYZ & Co., partnership firm
(d) Golden Limited, D Limited, E Limited, F Limited and XYZ & Co., partnership firm

4. The Companies Act, 2013 provides that in addition to standalone financial statement, the company shall also prepare
consolidated financial statements which shall also be presented before AGM. Accordingly, the consolidated financial
statements of Golden Limited for the financial year ended 31st March, 2023 includes:
(a) Golden Limited and D Limited
(b) Golden Limited, D Limited and E Limited
(c) Golden Limited, D Limited, E Limited and XYZ & Co., partnership firm
(d) Golden Limited, D Limited, E Limited, F Limited and XYZ & Co., partnership firm

5. Please select which is the correct option/ which is the most correct statement:
(a) Golden Limited had given the notice for holding AGM in Mumbai on Monday, 26th September, 2023 at 11.00 A.M.
(b) Golden Limited had given the notice for holding AGM in Delhi on Monday, 26th September, 2023 at 11.00 A.M.
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 LAW – Inter Class Test Prepared By Swami PH: 98142-12453
(c) Golden Limited had given the notice for holding AGM in Noida on Tuesday, 27th September, 2023 at 11.00 A.M.
(d) Golden Limited had given the notice for holding AGM in Delhi on Monday, 26th September, 2023 at 8.30 A.M.

NAME OF STUDENT……………….

[a] [b] [c] [d]

1. O O O O
2. O O O O
3. O O O O
4. O O O O
5. O O O O
6. O O O O
7. O O O O
8. O O O O
CASE STUDY
1. O O O O
2. O O O O
3 O O O O
4 O O O 0
5 O O O 0